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Requlred Informetion [ The following information applies to the questions displayed below. ] Kristin Helmud is the general manager of Highland Inn, a local mid

Requlred Informetion
[The following information applies to the questions displayed below.]
Kristin Helmud is the general manager of Highland Inn, a local mid-priced hotel with 100 rooms. Her job objectives include
providing resourceful and friendly service to the hotel's guests, maintaining an 80% occupancy rate, improving the
average rate received per room to $97 from the current $94, achieving a savings of 5% on all hotel costs, and reducing
energy use by 10% by carefully managing the use of heating and air conditioning in unused rooms and by carefully
managing the onsite laundry facility, among other means. The hotel's owner, a partnership of seven people who own
several hotels in the region, wants to structure Kristin's future compensation to objectively reward her for achieving these
goals. In the past, she has been paid an annual salary of $81,000 with no incentive pay. The incentive plan the partners
developed has each of the goals weighted as follows:
If Kristin achieves all of these goals, the partners determined t ubrace(brace)3 Get Answer nance should merit a bonus of $48,000. The
partners also agree that her salary will need to be reduced to $0y,00 vecause of the addition of the bonus.
The goal measures used to compensate Kristin are as follows:
Occupancy goal: ,29,200 room-nights =80% occupancy rate 10 rooms 365 days
Compensation: ,15% weight $48,0 target bonus =$7,2
Expense gool: $7,2029,200=$0.2466 per room-night
Compensation: ,5% savings
35% weight $48,0 target bonus =$16,80
$16,8095=$3,36 for each percentage point saved
Room rate goal: $3 rate increase
Compensation: ,35% weight $48,0 target bonus =$16,80
Energy use goal: ,$16,800300=$56.00 for each cent increase
$7,21=$72 for each percentage point saved
Kristin's new compensation plan will thus pay her a $69,000 salary plus 24.66 cents per room-night sold plus $3,360 for
each percentage point saved in the expense budget plus $56 for each cent increase in the average room rate plus $720
for each percentage point saved in energy use. The minimum potential compensation would be $69,000 and the
maximum potential compensation for Kristin would be $69,000+$48,000=$117,000
Requlred:
Based on this plan, what will Kristin's total compensation be if her performance results are: (Round your answers to the nearest
whole dollar amount.)
a.30,000 room-nights, 5% saved, $3.00 rate increase, and 8% reduction in energy use.
b.27,000 room-nights, 3% saved, $1.15 rate increase, and 5% reduction in energy use.
c.30,000 room-nights, 0% saved, $1.00 rate increase, and 2% reduction in energy use.
Answer is complete but not entirely correct.
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